Dow Jones futures were lower on Tuesday after a new attempt to rally on the stock market began on Monday, as major stock indexes recovered from new corrective lows. Yields on 10-year government bonds briefly topped 3% for the first time since December 2018. The two-day Federal Reserve meeting then begins on Tuesday.
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Arista Networks (ANET), Devon Energy (DVN), Diamondback Energy (FANG), Expedia (EXPE), Mosaic (MOS) and NXP Semiconductors (NXPI) were the main drivers of post-closure profits.
Arista rose 1% at the start of trading after strong earnings results. Devon shares rose about 1%. FANG shares rose. Expedia jumped by almost 5%. The mosaic fell about 3%. Shares of NXP rose about 1%.
Stock market today
On Monday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 rose 0.6%. The Nasdaq technology composite advanced 1.6%. Among the stock traded funds, the Tracker Nasdaq 100 Invesco QQQ Trust (QQQ) rose 1.7% and the SPDR S&P 500 ETF (SPY) rose 0.6% on Monday.
Overview of the US stock market today
Index Symbol Profit / Loss% change Dow Jones (0DJIA) 33063.61 +86.40 +0.26 S&P 500 (0S & P5) 4155.58 +23.65 +0.57 Nasdaq (0NDQC) 12533.61 +10.20.2010. FFTY) 32.36 -0.09 -0.28 Last update: 16:30 ET 02.05.2022
Twitter (TWTR) rose 0.2 percent and Tesla shares (TSLA) rose 3.7 percent on Monday.
Among the other leaders of the Dow Jones, Apple (AAPL) rose 0.2% and Microsoft (MSFT) traded 2.5% higher in today’s stock market.
Amid deepening stock market adjustments, Dow Jones Merck (MRK) leader – along with IBD Leaderboard Cheniere Energy (LNG), Exxon Mobil (XOM) and World Wrestling Entertainment (WWE) – are among the best stocks for watching on monday.
Microsoft and Tesla are shares of IBD Leaderboard. Exxon and Merck were introduced in the stock column near the buying area this week.
Dow Jones futures today: government bond yields, Fed meeting
Before opening on Tuesday, Dow Jones futures lost 0.3% of fair value, while S&P 500 futures also fell 0.3%. Nasdaq 100 futures fell 0.35% to fair value. Remember that the action at night in Dow futures and elsewhere does not necessarily turn into actual trading in the next regular session of the stock market.
Yields on 10-year bonds briefly topped 3% on Monday before closing at 2.99%. Yields on 10-year government bonds reached a new 52-week high and are at their highest level since December 2018. Meanwhile, US oil prices fell from sharp losses, with Texas Intermediate trading above $ 105 a barrel.
The Fed’s two-day meeting begins on Tuesday. Markets fully expect politicians to announce a half-point increase in interest rates when this week’s meeting of the Federal Reserve ended on Wednesday at 14:00 ET. And this is expected to be followed by more than the same – if not even greater increase – in the next two Fed meetings.
A new attempt at a stock market rally: what to do now
On Monday, major stock indexes hit new lows before turning up. Although one day did not create a trend, it was a step in the right direction. Monday was Day 1 of a new rally attempt, which means the next day could happen right after Thursday.
However, investors must stay on the defensive. This means avoiding new purchases until the next day. For now, keep a watch list of stocks that are doing well in a falling market. They could be one of the leaders in the stock market in the next upward trend.
Finding leaders on the next uptrend while the market is still adjusting is a challenge. One useful method is to use the relative strength of the shares. The RS line measures the performance of the stock price relative to the S&P 500. If the stock outperforms the wider market, then the RS line goes up. If a stock performs worse than the broad market, then the line will point lower.
The Big Picture column on Friday commented: “The Nasdaq Composite Index fell 4.2 percent to hit the bottom of Wednesday, killing a nascent rally. The index fell for the fourth week in a row, falling 13.2 percent for the month the bad monthly decline of October 2008. “
If you are new to IBD, consider looking at its stock trading system and the basics of CAN SLIM. Recognition of chart patterns is one of the keys to investment guidelines. IBD offers a wide range of lists of growth stocks, such as Leaderboard and SwingTrader.
Investors can also create watch lists, find companies approaching a point of purchase, or develop custom screens at IBD MarketSmith.
Five shares of Dow Jones to watch now
Dow Jones Surveillance Shares: Merck
The Dow Jones Merck drug is under a glass with 89.58 points to buy after a brief breakthrough attempt last week. Shares fell 1.2% on Monday, ending about 2% below the last record.
Positively, the relative strength of the shares is at new highs, which shows a great superiority of the stock market during the current correction of the stock market.
Three stocks with the highest growth to observe in the current stock market adjustment
Watching shares: Cheniere, Exxon, WWE
IBD Leaderboard Cheniere Energy shares are one of the best stocks to watch after gaining support around its 50-day moving average on Monday. The shares cut a flat base, which shows 149.52 points for purchase, according to an analysis of the chart of IBD MarketSmith.
Last week, energy giant Exxon Mobil added a handle to the base of the cup, moving the right buying point from 91.61 to 89.90. Shares turned from early losses to 1.4% on Monday. Exxon shares are about 4% off the new entry.
World Wrestling Entertainment remains below its 50-day moving average despite rising 2.4 percent on Monday. The decisive re-taking of the 50-day benchmark would be upward for the prospects of the shares. Meanwhile, stocks are just under 60.94 points to buy in a glass with a handle.
Join IBD experts as they analyze leading stocks in the current IBD Live stock market adjustment
Tesla shares
Shares of Tesla rose 3.7 percent on Monday after stocks broke their 50- and 200-day moving averages during a 13 percent decline last week. The actions ended just below their 200-day line.
Shares of the EV giant ended on Monday at about 22% of the point of purchase on a base with a cup with a handle of 1152.97. The shares traded up to 1243.49 on November 4 and are about 27% off the highest of all time.
Leaders of Dow Jones: Apple, Microsoft
Among Dow Jones shares, Apple’s shares turned from a sharp loss on Monday, rising 0.2%. The shares are still below their long-term 200-day line.
Software leader Microsoft rose 2.5 percent on Monday, recovering some of Friday’s 4.2 percent decline. The shares are sharply below their 50- and 200-day lines. Shares closed about 20% of their 52-week high.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more information on growth stocks and the Dow Jones Industrial Average.
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